Compare the best Scotiabank GICs

The best overall GICs in Canada

Scotiabank's GIC rates

Scotiabank’s guaranteed investment certificate (GIC) products feature a number of different options. Among these options are non-redeemable GICs, cashable GICs, market-linked GICs, and other speciality GICs. When comparing the rates on Scotiabank’s non-registered and registered GICs with those from other providers, you’ll find that Scotiabank’s rates are relatively competitive and comparable to a few other major banks in Canada.

When choosing a non-redeemable GIC, you can select term dates from 30 days to five years. If you purchase a GIC in a registered retirement savings plan (RRSP) or a registered retirement income funds, the term dates range from 90 days to five years. If you invest in a cashable GIC with Scotiabank, you’ll be able to redeem any portion of the investment after 30 days without any penalties when making a withdrawal. (If you’re wondering how GICs work, read our guide: “What is a GIC?”)

Why pick Scotiabank GICs?

Scotiabank is one of the largest banks in Canada and has been in operation for over 190 years. They have a strong reputation for providing reliable and secure financial services, making them a trusted choice for GICs. All of their GICs are CDIC-insured, meaning your GIC deposit is safe. Plus, if you’re a Scotiabank customer and have either of the Scotiabank chequing account packages like the Ultimate Package or Preferred Package accounts, you could get higher rates on certain GICs.

Although banks do sometimes reward existing customers for their loyalty, it’s still worthwhile to shop around for GIC rates at other banks. More on that below.

Scotiabank GIC rates today

Here are some of the most popular types of GICs available at Scotiabank, including Scotiabank cashable GIC rates, non-redeemable GICs and registered GICs.

Scotiabank non-redeemable GICs

Non-redeemable GICs are a popular choice for those looking for a higher interest rate and are willing to commit to a longer term. With a non-redeemable GIC, you cannot withdraw (cash out) your funds until the end of the term without being charged an early-withdrawal penalty. Banks and financial institutions tend to offer higher rates for non-redeemable GICs. The highest GIC rate at Scotiabank, for example, is currently for a 1-year non-redeemable GIC.

Scotiabank cashable GICs

Cashable GICs are a great option for those who may need access to their funds before the end of the term. With a cashable GIC from Scotiabank, you can withdraw your funds at any time without penalty. However, keep in mind that the interest rate offered may be lower than a non-redeemable GIC. 

What is the minimum amount you need to invest in a Scotiabank GIC?

The minimum amount you need to invest in a Scotiabank registered or non-registered annually compounding or semi-annual GIC is $500. For monthly compounding non-redeemable GICs, you’ll need a minimum of $5,000.

Scotiabank market-linked GICs

Market-linked GICs are a unique type of GIC that offers the potential for higher returns based on the performance of a specific stock market index (like the S&P 500) - but there is more risk involved than with regular GICs.

If you are interested in market-linked GICs, Scotiabank offers a variety of market-linked GICs with different terms and indexes to choose from. Here are some of Scotiabank's market linked GICs that pay the highest rates: 

• Scotiabank Canadian Top 60
• Scotiabank Canadian Utilities
• Scotiabank Canadian Top 60

Keep in mind that if a market-linked GIC offers a minimum 10% return, you aren’t guaranteed to earn 10% interest per year, but over the whole term of your investment (i.e. after 5 years for a 5-year GIC.) Shorter term market-linked GICs like 2 and 3-year terms offer lower minimum returns at Scotiabank than longer ones.

These rates are subject to change and may vary depending on market index values. As you can see above, if the index performed poorly, the annual minimum return you would get is small at around 1-2% compared to the regular GIC rates, which offer 3.95-4.75% annually - the risk of investing in market-linked GICs.

• Also read: Compound interest calculator

How to invest in a Scotiabank GIC

Investing in a Scotiabank GIC is a simple and straightforward process. You can open a GIC online, over the phone, or in-person at a Scotiabank branch.

To open a GIC online, you will need to have a Scotiabank account and be registered for online banking. Once you are logged in, you can select the GIC option and choose the type of GIC you would like to open. You will then be prompted to enter the amount you wish to invest and select the term and interest payment frequency. If you prefer to open a GIC over the phone, you can call Scotiabank's customer service line and speak with a representative who can assist you with the process.

Lastly, you can visit a Scotiabank branch to open a GIC in-person. A financial advisor will be able to guide you through the process and answer any questions you may have, which may be helpful if you want to figure out whether a GIC is the best option for your financial goals and situation.

Pros of Scotiabank GICs

• Low Risk: Scotiabank GICs are considered low-risk investments because they are backed by the Canada Deposit Insurance Corporation (CDIC). This means that even if Scotiabank were to fail, your investment would be protected up to $100,000.
• Flexible Options: Scotiabank offers a variety of GIC options to choose from, including cashable GICs, non-redeemable GICs, and market-linked GICs. You can select the option that best suits your investment goals and risk tolerance.
• Competitive Rates: Scotiabank offers competitive rates on their GICs, making them an attractive choice for investors. By comparing the rates offered by Scotiabank with those of other financial institutions, you can ensure that you are getting the best return on your investment.

Cons of Scotiabank GICs

• Potential for Lower Returns: While Scotiabank GICs offer guaranteed returns, the interest rates may be lower compared to the GIC rates offered by digital banks and credit unions, who are eager to attract new customers, and have lower costs, allowing them to offer higher rates.
• Minimum Investment Requirement: According to their website, GICs from Scotiabank require a minimum investment amount of at least $500, while some digital banks like EQ Bank only require a $100 minimum investment for GICs.

Alternatives to Scotiabank GICs

There are several alternatives to Scotiabank GICs that you can consider. Many other options have higher regular interest rates than CIBC GICs.

• BMO GICs: BMO is another major Canadian bank that offers GICs with attractive interest rates, especially for non-redeemable GICs. 
• TD GICs: TD offers GIC rates that are available for registered and non-registered accounts like RRSPs and TFSAs. TD currently pays higher regular interest rates for long-term registered and unregistered GICs than CIBC.
• RBC GICs: Royal Bank of Canada (RBC) offers a wide range of GIC options with competitive interest rates.
• Credit Union GICs: Credit unions like Meridian Credit Union and Saven Financial are member-owned financial institutions that offer competitive GIC rates. They are provincially-insured.
• Online Banks: Online banks such as EQ Bank and BMO GICs: offer high-rate GICs with lower minimum investment amounts. EQ Bank requires only $100 for a GIC, and currently offers one of the highest rates on a 1-year GIC.
• Government Bonds: Government bonds are other low-risk investments. They offer fixed interest rates. Learn more about GIC alternatives.

Always shop around for the best GIC rates

A Scotiabank GIC is a safe and secure way to invest your money and earn a guaranteed return. With competitive rates and a variety of GIC options to choose from, Scotiabank is a top choice for investors. Consider your financial goals and the different GIC options available from other banks and credit unions to determine which one is the best fit for you. With the right GIC, you can reach your savings goals or add stability to your investment portfolio.